Technical Breakout Stocks: How to trade Adani Power, Jindal Steel, and Coromandel International on Monday

Jindal Steel is trading above its all-time high level of August 25, 2010. Last week, the stock formed a Dark Cloud Cover candlestick pattern, indicating a short-term reversal. The low volume during the sell days suggests a retracement in the security.

The snapped a 4-day decline to close in the green on Friday, tracking positive global cues.

The S&P BSE rose 75 points but failed to close above 74,000, while the closed 42 points higher.

Sectorally, buying was seen in metal, power, realty, and utilities, while some selling was witnessed in FMCG, auto, and IT stocks.

Stocks in focus included names like , which rose more than 8% to hit a fresh record high, and , which pared gains but closed flat with a positive bias. and Power also closed flat with a negative bias on Friday.

We have collated a list of three stocks that either hit a fresh 52-week high, or an all-time high or saw a volume or a price breakout.

We spoke to an analyst on how one should look at these stocks the next day entirely from an educational point of view:

Analyst: Kunal Kamble, Sr. Technical Analyst at Bonanza Portfolio

Adani Power: Buy
On May 21, 2024, Adani Power broke out of a Rising Wedge pattern, leading to an upward move. On May 24, 2024, selling was observed towards the breakout level, but the low volume confirmed a retracement in the security.

A Marubozu candle formed the following day, indicating buyers were overpowering sellers. Today, the price has surpassed the previous high and closed above its all-time high, indicating a continuation of the upward move.

The price is trading above both the Fast (50) and Slow (200) EMAs, signalling an upward trend in security.

A surge in volume indicates increased buyer interest. The RSI has broken out of a falling trend line, supporting the price action.

The DI+ trading above DI- suggests an uptrend in the security, while the ADX trading above DI- indicates strength in the upward move.

Jindal Steel: Buy On Dip
Jindal Steel has managed to above its all-time high, formed on August 25, 2010. Last week, the security formed a Dark Cloud Cover candlestick pattern, indicating a short-term reversal.

The low volume during the sell days suggests a retracement in the security. This week's volume is comparatively lower than the high day volume, indicating a potential retracement move ahead.

If the price retraces towards the breakout level, it could present an opportunity to enter a long position again.

Coromandel International: Buy On Dips

On April 24, 2024, Coromandel broke out of a Descending Triangle pattern, leading to an upward move, reaching 50% of its target.

Any retracement towards the 50-day EMA would present an opportunity to enter a long position in security. At the current level, it is advisable to avoid buying.

(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)

Source: Stocks-Markets-Economic Times